46% of Americans have started a gig to generate passive income at one point in time. A 2024 survey shows that 34% of Americans currently have a side gig. People who dedicate less than 2 hours to their side hustles daily earn an average of $1,122 per month. Half of all millennials and 70% of Gen Z respondents have a side gig.
By 2027, 83% of Americans are expected to have a side hustle. This market is valued at over $2.58 trillion in 2024.
Around half of people with side hustles do it because they enjoy it, not because they need the extra money. About a third do it to generate income.
Whatever the reason for your interest, here are some services you can offer to earn passive income online.
Invest in ETFs or dividend stocks
You can invest in stocks that pay regular dividends and receive income based on the number of shares you own or in exchange-traded funds or ETFs. Lucrative ETFs include the S&P 500 ETF Trust, Invesco QQQ Trust, VIG, VTI, ARKK, and DVY.
The S&P 500 ETF tracks the S&P 500 index, providing exposure to 500 of the country’s biggest companies.
Invesco QQQ Trust tracks the Nasdaq-100 Index, which is heavily weighted toward technology and innovation companies.
Vanguard Total Stock Market ETF or VTI covers the entire US stock market.
ARK Innovation ETF, or ARKK, focuses on disruptive technologies and innovative companies.
iShares Select Dividend ETF or DVY emphasizes high dividend-paying stocks.
Finally, the VIG (Vanguard Dividend Appreciation ETF) invests in companies with a history of increasing dividends.
Lending platforms
Provided you have some capital, you can use lending platforms to give individuals or small businesses loans and earn interest.
Look for platforms with robust security measures, a strong track record, and transparent fee structures. Remember that loan origination and servicing fees can impact your returns.
Spread your investment across different loans to limit risk. This approach helps mitigate the risk of defaults.
Most platforms categorize loans by risk grades. Higher-grade loans (lower risk) offer lower returns; the opposite is true for lower-grade loans.
Resell web hosting
Reseller hosting is a low-risk, rewarding opportunity that doesn’t require any experience or technical knowledge. You need a trustworthy web hosting provider and the capacity to market and sell the service.
Web hosting resellers offer their product at a fraction of the price charged by the parent host. Once you attract customers, you don’t need to do anything. It’s the textbook definition of passive income.
Different hosting providers offer various packages, so ask about each one’s features and prices. You can promote your services through ads on social media or invest in SEO.
Start a YouTube channel
You can upload product reviews or tutorials or start a podcast series on YouTube. Successful YouTubers monetize their channels through ad revenue and sponsorship.
Customize your channel with a unique banner, description, and appealing profile picture. Your best bet is a combination of trending and evergreen topics. You need a quality camera, microphone, and lighting.
Adobe Premiere Pro is a great video editing tool, but it is also a bit expensive. You can opt for free software like DaVinci, Shotcut, etc.
Upload videos regularly to make your channel visible and keep it engaging. This is the best way to build a loyal audience.
Automated dropshipping store
According to Statista, the global dropshipping market will reach $301 billion in 2024 and increase to $476.1 billion by 2026. You can set up an e-commerce store that automates order fulfillment through suppliers using platforms like Shopify or WooCommerce.
Recap
- Invest in ETFs or dividend stocks
- Use a lending platform to give small loans
- Resell web hosting
- Start a YouTube channel
- Automated dropshipping store